This clause attempts to say that one party cannot be sued for fraud—lying or deliberately deceiving the other party. This is almost always unenforceable and void in both UK and US courts. Courts treat fraud as so serious that they refuse to let parties contract away liability for it, even if both sides agreed in writing. If someone deliberately lies to trick you into signing, you can sue them for fraud regardless of what the contract says. This clause is a red flag because it suggests the other party is thinking about dishonesty.
Simply refuse this clause—do not sign any contract containing it. If the other party insists on including it, that's a warning sign about their trustworthiness. Walk away. No legitimate business needs to exclude fraud liability, and courts won't enforce it anyway, so agreeing to it signals you're dealing with someone willing to be deceptive. ---
Frequently Asked Questions
What does this clause mean in simple terms?
This clause attempts to say that one party cannot be sued for fraud—lying or deliberately deceiving the other party.
Why should I care about this clause?
This is almost always unenforceable and void in both UK and US courts.
What are my options?
Courts treat fraud as so serious that they refuse to let parties contract away liability for it, even if both sides agreed in writing.
How does this affect small businesses?
If someone deliberately lies to trick you into signing, you can sue them for fraud regardless of what the contract says.